Auto stocks are busy arguing about EV demand, steel prices are busy falling, and Vardhman Special Steels calmly decided to grow profits anyway. While most metal companies blame China, macros, and destiny, VSSL quietly reported 56% YoY PAT growth with revenues barely moving. Yes, this is one of those quarters where the P&L looks bored at the top and pumped at the bottom.
The real plot twist? A ₹475 crore forging CAPEX, Japanese partners doubling down, and green steel ambitions that sound expensive but oddly well-timed. If you thought this was just another “prices fell, sorry boss” steel concall—stick around. The interesting stuff starts after EBITDA. 😏
2. At a Glance
Revenue up 0.9% – Prices fell, volumes said “hold my beer.”
EBITDA up 34% – Other income worked harder than operations.
PAT up 56% – Leverage + lower interest = finance team’s moment.
Volumes up 4.6% – Tonnage quietly doing the heavy lifting.
EPS up 32% – Bonus-adjusted, so no optical jugaad here.
3. Management’s Key Commentary
“Q3 FY26 witnessed a steady performance with stable revenues.” (Translation: Prices fell, but we didn’t panic-sell steel.)
“EBITDA and PAT grew 34% and 56% YoY respectively.” (Translation: Don’t look only at topline, please.) 😏
“Approved ₹475 crore investment for forging and machining facility.” (Translation: Goodbye commodity steel, hello OEM wallet share.)
“Technical collaboration with Aichi Steel Corporation.” (Translation: Japanese approvals = harder to lose customers.)
“Closed-loop steel recycling initiative with Maruti Suzuki.” (Translation: Green steel, but also sticky OEM relationships.)
“Reheating furnace commissioning by March 2026.” (Translation: Capacity bottlenecks are being bullied.)
“Solar investment to reduce power costs over long term.” (Translation: Margins want sunscreen.) 🌞
4. Numbers Decoded
Metric
Q3 FY26
YoY Trend
What It Really Means
Revenue
₹430.5 cr
Flat
Price fall masked volume growth
EBITDA
₹56.5 cr
+34%
Boosted by other income
EBITDA/ton
₹10,241
↑
Core ops still solid
PAT
₹33.6 cr
+56%
Interest costs collapsed
Volumes
55,141 t
+4.6%
OEM demand intact
Ex-ASC & PSPCL interest, EBITDA/ton still ₹9,263—respectable.
